this doesn't work for me on Drupal 5.0.
The uploaded picture gets the filename "picture-.jpg", the uid is missing. Still investigating whats wrong with my setup, but you should doublecheck your uploaded files ;) And check your upload with a different picture as the picture from user/1,
otherwise you won't notice the failure because the pic from user/1 is shown in the profile.

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ROYAL HERITAGE LOTTERY INTERNATIONAL
HEADQUARTERS UNITED KINGDOM.

I've been trying to get this to work for a couple of hours, I tried it in the login toboggan and I made my own hook_form alter and put the code in it. I have Drupal 5, and all my pictures are being saved as picture-0, I've tried lots of stuff with hook_user, but I can't overried the $edit->picture which is set to 0

Would love to hear if someone with D5 has picture upload supported on their registration form.

I wanted to let a user select an avatar on the user registration page. Although the "avatar_select" module gave me the option of selecting pictures, it didnt help me with the uploadin bit.. as in i couldnt see an upload ur image field (although i had picture enabled for users). So this is wat i did... hope it helps out some of you

modification to avatar_selection_form_alter() :

look for the if('user_register'==$form_id) part which specifies that u r modifying the registration form...
and add the following lines after $upload=1;

piya, i faced the same issue..
this is when i modified the avatar select module...

basically u have to modify the registration form... so in the module find avatar_selection_form_alter() (this is a hook to alter any form).
now.. inside this look for if('user_register'==$form_id) .. this specifies that u r tryin to modify the registration form..

now place the code mentioned above to it.. wat it does is basically it adds an upload field to the registration form in the avatar select fieldset... i think thats exactly what u r looking for... and u dont need login toboggan if u r usin it for only this purpose.